RBI digital rupee participants hail the central bank's initiative
Even though the central bank has cast its net for digital rupee use-cases far and wide — spanning 15,000 people across Mumbai, New Delhi, Bengaluru and Bhubaneshwar — it is beginning in the RBI's own backyard. Read on to know more:
The Reserve Bank of India (RBI) launched a limited test of the retail digital rupee for specific use cases on November 1, 2022. Even though the central bank has cast its net for use-cases far and wide — spanning 15,000 people across Mumbai, New Delhi, Bengaluru and Bhubaneshwar — it is beginning in the RBI's own backyard. Bachhe Lal Sahani, who sells fruits in the lane behind the RBI headquarters is one of the testers.
Sahani said RBI representatives got in touch with him and asked him accept e-rupee transactions. "They helped me open an IDFC First Bank account with a connected digital wallet for transactions. Now, I receive a notification on my phone every time a transaction is made," he said, adding that at present, the RBI employees are using it, but it would be open to the public soon.
The fruit vendor is not the only one who has been roped into testing the retail Central Bank Digital Currency (CBDC) in the area. Shree Bholanath Tea House, which is right next door, is also a participant. Their reviews so far suggest — pardon the pun — that this could be their cup of tea.
The stall's owner finds digital currency more user-friendly as transactions can be done with the click of a button. As it is backed up by RBI it provides user safety.
Apart from secure transactions, a big plus point of the CBDC is that even though it's in the form of a digital token, it represents legal tender, and is issued in the same denominations as paper currency and coins.
At the moment, the app is being used by a restricted group, comprising both customers and businesses, but once successful, it would be rolled out for use by the general public, with both, person-to-person as well as person-to-merchant transactions becoming possible. The testing phase has eight banks participating and this list too will also grow over time.
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First Published: Jan 12, 2023 9:05 PM IST
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